How Does Amal Invest Actually Work? A Complete Guide

Curious about what goes on behind the scenes at Amal Invest?

Let's pull back the curtain and show you exactly how we turn conventional ETFs into Shariah-compliant investment opportunities.

Key Takeaways

Amal applies Shariah compliance screening to popular ETFs and mutual funds - We rebuild custom funds using only compliant companies - You invest through a connected broker (Alpaca or Trading212) with full automation - Your portfolio stays synced and compliant over time

So you've heard about Amal Invest, but you're scratching your head wondering, "Okay, but how does this actually work?" Well, my financially curious friend, you've come to the right place! 🎯

Think of us as your personal halal investment chef. We take a popular "recipe" (like the S&P 500 or a growth fund), carefully remove all the haram ingredients, and serve you up a delicious, Shariah-compliant portfolio that still captures the essence of what made the original so appealing.

Let's break down our three-step process that transforms conventional investing into halal wealth building.

Step 1: Fund Filtering – The Purification Process

What We Start With

We begin with popular ETFs and mutual funds that investors love – think FDGRX (Fidelity Growth Company), VDADX (Vanguard Dividend Appreciation fund), and many others. These funds are beloved for good reason: they're diversified, have strong track records, and offer exposure to the best companies in the market.

But here's the problem: they also include companies that don't align with Islamic values or ethical investing principles. That's where we come in.

Multi-Layer Filtering System

This is where the magic happens. We put every single holding through our comprehensive screening process:

Shariah Compliance Screening

At Amal, we currently rely on Shariah compliance data provided by Zoya, which follows the AAOIFI standards. These standards are focused on financial and sector-based screening — for example, looking at interest-based debt levels, impermissible income, and business activity categories (like alcohol, gambling, weapons, etc.). Based on these criteria, companies may be marked as compliant even if they are involved in serious ethical concerns outside the scope of traditional Shariah screening.

Real Talk: What Gets Filtered Out?

From the S&P 500, we typically filter out about 267 companies (53%) as non-compliant, with another 12 companies (2%) marked as doubtful, leaving 222 companies (44%) that are Shariah-compliant. That includes obvious ones like JPMorgan Chase (banking) and Anheuser-Busch (alcohol), but also less obvious ones like Microsoft (due to weapons contracts) and Disney (due to entertainment content concerns).

The Result: A Clean Foundation

What we're left with is a "clean" list of companies that pass all our screening criteria. These are solid, profitable businesses that align with your values – the foundation of your halal portfolio.

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Getting Started: Your Journey to Automated Halal Investing

Ready to experience the Amal difference? Here's how simple it is:

  1. Choose Your Base Fund: Pick from our selection of reconstructed popular funds
  2. Set Your Investment: Decide how much you want to invest
  3. Connect Your Broker: Link your Alpaca or Trading212 account
  4. Let Us Handle the Rest: We'll build and manage your portfolio automatically

The beauty of Amal Invest is that you get the sophistication of institutional-grade portfolio management with the simplicity of a single-button investment. No more choosing between convenience and compliance – you can have both!

Ready to see how your favorite ETF would look after the Amal treatment?

Try Amal Invest →

We'll show you exactly which companies would be included, what gets filtered out, and how your reconstructed portfolio would have performed historically. It's like getting a sneak peek behind the curtain before you commit!

Your halal investing journey doesn't have to be complicated. Let us handle the complexity while you focus on building wealth that aligns with your values. 📈🤝

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